In the 1980s, the Kuwaiti dinar bond market was a popular source of U.S. dollar loans due to the fact that:
A) the interest rate on the Kuwaiti dinar was 6% above U.S. dollar rates and the Kuwaiti dinar was relatively stable.
B) the Kuwaiti dinar was expected to depreciate against the U.S. dollar.
C) the interest rate on the Kuwaiti dinar was 6% below U.S. dollar rates and the Kuwaiti dinar was relatively stable.
D) the Kuwaiti dinar was overvalued.
Correct Answer:
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